Unit 33: Small Business Enterprise – Jay GloverUnit code: H/601/1098 - QCF level: 5 Credit value: 15 credits

• AimThe aim of this unit is to give learners the opportunity to focus on the processes involved, through change management, of reviewing and improving the performance of a small business enterprise.

• Unit abstractThis unit is designed primarily for learners who are interested in small business enterprises and looks at the development and expansion of these businesses. The unit will be particularly appropriate for learners currently working in a small business enterprise. The unit is also appropriate for learners who have had work placements or work experience in small businesses and for learners who wish to pursue careers in the small business sector of the economy.The government’s vision is for more people in the UK to have the opportunity, aspiration and motivation to use their talent and initiative to be enterprising, and to have an increased proportion of people starting a business. The Department for Business, Innovation and Skills is responsible for small business and enterprise policy. Statistics from the Federation of Small Businesses website show that there are almost 5 million small businesses in the UK, almost 14 million people are employed in small- and medium-sized enterprises and over half a million people start up their own businesses every year. The small business sector provides employment and career opportunities which may appeal to many learners not attracted to a career in large organisations. The unit draws together many of the topics covered in other units and allows learners to practise the business skills needed in reviewing and managing the performance of a small enterprise.

• Learning outcomesOn successful completion of this unit a learner will:1 Be able to investigate the performance of a selected small business enterprise2 Be able to propose changes to improve management and business performance3 Be able to revise business objectives and plans to incorporate proposed changes4 Be able to examine the impact of change management on the operations of the business.

Unit content1 Be able to investigate the performance of a selected small business enterpriseBusiness profile: components of the business, objectives of the business, internal and external factors affecting business performance, performance measures, constraints and restrictions on business, responsibilities and liabilities of owner-managerComparative measures of performance: comparisons with other similar-sized businesses in same geographical area, comparisons with businesses in same or similar industry, comparisons with industry averages; comparisons should cover all areas (financial, production, marketing, sales, human resources, use of technology)Analysis of business information: analysis of past and current business information (financial, marketing information, sales, production, human resource efficiency, management effectiveness) using ratios, budget information, market research results, SWOT analysis, business reports eg production efficiency

2 Be able to propose changes to improve management and business performance

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Overcoming weaknesses: problem-solving strategies, sources and availability of professional advice in appropriate areas, finding solutions and alternatives, availability and use of outsourcing for specific functions eg payroll, debt collectionMaintaining and strengthening existing business: maintaining appropriate performance records, building on business strengths, maintaining market share/position, importance of good customer/supplier/adviser relationshipsNew opportunities: identifying areas for expansion eg niche markets and export opportunities where appropriate, research techniques, evaluating projects, assessing project requirements, costing and finding finance for new projects, risk assessmentEvaluation of management and personnel: skills audit, self-evaluation, development of self and associated personnel, assessing costs and benefits of self and staff development

3 Be able to revise business objectives and plans to incorporate proposed changesBusiness objectives: structure of business objectives, assessment of business objectives in the light of current performance, making changes to business objectives, impact of changes on business plansBusiness plans: structure of integrated business plans (financial, sales and marketing, production/output, personnel), use of business plans, evaluation of plans against business objectives, incorporating changes to plans, budgeting for changes, preparation of business forecastsAction plans: plans to implement changes, systems to manage, monitor and evaluate changes, performance measures, milestones, setting deadlines

4 Be able to examine the impact of change management on the operations of the businessImpact of change: effects of change on all areas of business (finance, workloads, morale, job roles, physical aspects eg office space, production methods); use of technology, anticipating possible obstacles/problems Management of change: monitoring effects of change, maintaining systems and records to evaluate impact of change, appropriate revision of plans in response to actual results

Learning outcomes and assessment criteriaLearning outcomesOn successful completion of this unit a learner will:Assessment criteria for passThe learner can:LO1 Be able to investigate the performance of a selected small business enterprise1.1 produce a profile of a selected small business identifying its strengths and weaknesses1.2 carry out an analysis of the business using comparative measures of performance

LO2 Be able to propose changes to improve management and business performance2.1 recommend with justification, appropriate actions to overcome the identified weaknesses in the business2.2 analyse ways in which existing performance could be maintained and strengthened2.3 recommend with justification, new areas in which the business could be expanded

LO3 Be able to revise business objectives and plans to incorporate proposed changes3.1 produce an assessment of existing business objectives and plans3.2 revise business plans to incorporate appropriate changes3.4 prepare an action plan to implement the changes

LO4 Be able to examine the impact of change management on the operations of the business4.1 report on the impact of the proposed changes on the business and its personnel4.2 plan how the changes will be managed in the business4.3 monitor improvements in the performance of the business over a given timescale.

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GuidanceLinksThis unit links with other management units within this specification.The unit also links with the Management and Leadership NOS.Essential requirementsSome learners will be able to use their own experience of small business as a basis for their work in this unit. Other learners will need to be given realistic case studies.Local government reports and statistics relating to small businesses are available in most public libraries and will be needed. Employer engagement and vocational contextsLearners will be encouraged to use their own organisation for research. Learners will require access to research facilities and the internet. Guest speakers with experience of small business management can provide valuable input to support the underpinning knowledge and understanding of the unit.

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